“Life Insurance is like a parachute, if you don’t have it the first time you need it, there is no second chance.”
~ Luis A. Ortiz Haddock
What is Insurance?
Insurance is a way to manage your risk. When you buy insurance, you purchase protection against unexpected financial and health losses. It absolves the risk of uncertainty and provides a piece of mind. Having a right insurance can make a big difference to you and your family.
Types of Insurance in India
Life insurance policies ensure financial assistance and independence to one’s family in case of an unfortunate event. Adequate life insurance cover ensures that they lead similar financial lives in absence of earning member.
Types of Life insurance policies:
- Term Plan – Term Insurance provides coverage for a certain period of time or years. If the insured meets with an unfortunate event over the policy tenure, a sum assured is paid out to the nominee selected at the time of purchasing the plan. No payout is made if the insured survives the tenure. It is possible for the policyholder to opt for a larger life cover at a lower premium when compared to a similar endowment plan.
- Savings & Income Plan – Savings & Income Plan is designed to support disciplined savings and also ensures steady returns throughout the policy term which can be paid in the form of monthly income or lumpsum depending on the persons need and plan.
Any sort of non- life Insurance falls under General insurance. Such as health, accident, motor, travel, home etc.
Types of general Insurance:
- Health Insurance – It covers the cost of an insured individual’s medical and surgical expenses depending on the type of health insurance coverage. With the rising medical inflation in India, buying health insurance has become a necessity.
- Personal Accidental Insurance – It provides monetary compensation in the event of bodily injuries or disability or death caused solely by accidental, violent, visible and external events.
- Motor Insurance – Motor Insurance is compulsory for all the vehicles that are plying on the road. Its main objective is to give complete protection against any physical damage or loss from natural or man-made calamities. Eg- car, motor, commercial vehicle insurance.
- Travel Insurance – Travel Insurance covers the costs and losses and reduces the risk associated with unexpected events you might incur while traveling. It provides protection for those traveling domestically or abroad.